Isle of Man-based firm fined £150k in UK tax investigation

AML Tax share an office with other firms at Knox House in Douglas

An Isle of Man-based firm that "aggressively promoted tax avoidance schemes in the UK" has been fined for not complying with a tax investigation.

AML Tax (UK) Limited was fined £150,000 by a UK tribunal for failing to hand over records needed to calculate its tax bills for 2014 and 2015.

HM Revenue and Customs (HMRC) said the firm had carried out a "sustained campaign of non-compliance".

It said the firm's bill for the period was estimated to be more than £3m.

The company is one of a number of associated companies which share an office at the same address on Finch Road in Douglas, and is part of the Knox Group of companies owned by billionaire businessman and island resident Doug Barrowman.

'Obstructive conduct'

HMRC has been investigating the firm's tax returns for the period, and has already imposed £9,000 of penalties on the firm for not providing the information needed.

In its judgement, the Upper Tribunal in the UK's Tax and Chancery Chamber said the firm was "involved in providing services in connection with various tax avoidance structures to UK resident taxpayers".

Judges said AML director Arthur Lancaster had been "evasive" in his evidence to the tribunal, which included statements that were "confused, lacking in candour, in some respects incorrect and littered with inconsistencies".

HMRC counter avoidance director Mary Aiston said she was "delighted their obstructive conduct has been penalised" after a "series of tactics were used" to frustrate the investigation.

UK tax authorities were "determined to drive promoters of tax avoidance out of business", she added.